Marketing No Comments

Bank of England poised to act under new inflation strain

Facing pressure to curb surging inflation, the Bank of England looks set to raise interest rates again on Thursday and signal further unwinding of its pandemic stimulus, including a gradual reversal of its huge bond-buying plan.

Twenty-nine of 45 economists polled by Reuters late last month said the BoE would raise Bank Rate to 0.5% from 0.25% at its February meeting, hot on the heels of December’s rate hike, the first by a major central bank since the pandemic.

It would mark the first back-to-back borrowing cost increases by the BoE since 2004, reflecting an urgent need to show it is on top of an inflationary surge.

Separately, British finance minister Rishi Sunak was expected to announce on Thursday measures to smooth a possible 50% jump in household energy bills. read more

The Bank of England forecast in December that inflation would peak at around 6% in April but price growth that month jumped by more than expected to 5.4%, its highest in almost 30 years.

The labour market has also tightened, something Governor Andrew Bailey says is key to the monetary policy outlook.

To find out more about how we can assist you with your Second Charge Mortgage please click here

Data published on Thursday showed employers were offering higher pay deals in the face of staff shortages and rising inflation. read more

“Members are likely to disregard what looks set to be a temporary bump in the path of the economic recovery around the turn of the year due to the spread of the Omicron variant,” said Investec chief economist Philip Shaw, predicting an unanimous 9-0 vote by the Monetary Policy Committee to raise rates.

The BoE’s stance contrasts with the European Central Bank, which looks set to leave policy on hold on Thursday. read more

The U.S. Federal Reserve is signalling a first rate hike in March although officials spoke cautiously on Monday about what might follow. read more

Investors will be looking for signs in the Bank of England’s new inflation forecasts whether it thinks investors are being too aggressive by betting on the Bank Rate reaching 1.5% by the end of 2022.

But Bailey may be wary about sending explicit messages after the BoE wrong-footed many investors last year.

Among MPC members, only Catherine Mann, Bailey and Deputy Governor Jon Cunliffe have spoken publicly in 2022.

“After the BoE’s communications fiasco late last year, it has decided to respond by saying less rather than more,” said JPMorgan economist Allan Monks, cautioning that investors’ conviction about a 25 basis point hike might be overdone.

The announcement is due at 1200 GMT. Bailey will lead a news conference half an hour later.

Discover our Second Charge Mortgage Broker services.

LITTLE QT

If rates do go up to 0.5%, it marks the point at which the BoE has said it will begin a process called quantitative tightening (QT) – or reducing its vast holdings of government bonds, bought to stimulate Britain’s economy.

The Bank of England has said it will start by not reinvesting money from maturing gilts, possibly as soon as March when 25 billion pounds of bonds it owns are due to mature.

Bond investors want to know if the BoE intends to accelerate the QT process.

Last August, it said it would start to sell its gilts once Bank Rate hits at least 1%, depending on economic circumstances.

“Even though the market is actively pricing such a scenario, we continue to doubt that the hiking cycle will get that far,” said Rabobank strategist Stefan Koopman, who warned the BoE might find itself raising rates just as the economy slows.

Tax hikes on workers, as well as rising energy and food bills, are set to intensify a cost-of-living squeeze.

A survey from insurance and pensions company Aegon showed 38% of Britons were worried that rising interest rates would hit their finances. An Ipsos MORI poll for the Evening Standard newspaper showed economic morale at a one-year low.

By Andy Bruce

Source: UK Reuters

Marketing No Comments

Bank of England increases interest rates amid inflation concerns

The Bank of England (BoE) has announced that the Monetary Policy Committee has voted to raise interest rates from 0.25% to 0.5%.

Inflation is continuing its upward trend, driven principally by price rises in energy, food, and tangible goods. The Bank’s forecast is that inflation will peak at 7.25% in April once the energy price cap increases by 54%. This will be the highest inflation seen since the early nineties.

The Bank of England is expecting inflation to fall back by the middle of the year, with an expectation that the 2% long term target will be achieved in two years.

Interest rates are the monetary policy lever that can be used to curb or accelerate inflation. Due to the levels of inflation shown above, the Bank has agreed to raise interest rates to 0.5%.

To find out more about how we can assist you with your Second Charge Mortgage please click here

This is following an original increase to 0.25% in October 2021. Analysts are expecting these rises to be the start of a series looking to bring inflation back to its 2% target. This may signal the end of the low interest rate environment seen since the financial crisis of 2008.

Inflation is a key concern for households when wage growth fails to keep apace, which was the case at the turn of the year. The Bank is optimistic, expecting strong wage growth over 2022. This, however, may lead to an increase in the unemployment level toward 5%.

Overall, the Bank of England is feeling relatively optimistic, but it is worth noting that several risks remain entrenched in the global economy over the medium term. The geopolitical stresses, freeing of supply bottlenecks and the ability of employers to peg pay to inflation, all remain unclear.

The inflationary pressure that the Bank is acting upon illustrates why IGD’s Shopper Confidence Index have slumped to historic lows in January.

Source: IGD

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

Bank of England to Defend Pound Sterling’s Gains against Euro, Dollar says Analyst

In its quest to fight inflation the Bank of England will welcome onside the recent appreciation in the value of the British Pound.

The Bank of England will on Thursday likely raise interest rates again according to current market expectations in an attempt to stem surging inflation levels which could go as high as 7.0% this year and risk staying above the Bank’s 2.0% target for months to come.

For the Pound the steady build up in expectations for 2022 rate hikes at the Bank has proven a potent source of support: for the UK currency’s valuations to be maintained going forward these expectations must not be disappointed.

Expectations are certainly lofty with Chris Turner, Global Head of Markets and Regional Head of Research for UK & CEE, saying current pricing by money markets “is now at a staggering 1.35% for the December 2022 Bank of England meeting”.

This implies over 100 basis points of hikes are expected to be delivered in 2022, posing questions as to whether the market is getting ahead of itself.

To find out more about how we can assist you with your Second Charge Mortgage please click here

Given the Pound is priced according to these expectations, any paring back of such expectations could result in the Pound retreating from recent highs against the Euro while opening the door to a more concerted downtrend against the Dollar.

But Turner says the Bank won’t want to derail Pound Sterling as a stronger currency in fact helps ease inflationary pressures.

“In the past, in a deflationary environment with weak global demand a former BoE might have issued a verbal rate protest against such pricing – in order to weaken GBP. However, we suspect that the Bank of England is currently welcoming GBP strength in its fight against higher energy prices,” says Turner.

This year has seen the effective exchange rate of the Pound rise to its highest levels since 2016 when it fell in precipitous fashion following the UK’s vote to leave the EU.

The effective exchange rate is a basket of Pound exchange rates that weighs in favour of the country’s main trade partners.

Give the Eurozone is by far the UK’s largest trading partner it stands that the Pound to Euro exchange rate is the effective exchange rate’s largest constituent, and its recent rally to two-year highs has aided the UK’s purchasing power.

A stronger Pound makes the cost of imports cheaper, which is important given the UK is a net importer, thereby acting as a deflationary source.

Turner says a 25 basis point rate hike on Thursday and no protest against market pricing of rate hikes should see EUR/GBP pressing strong support near 0.8275. For those watching the GBP/EUR equation translates into a rise to 1.2084.

ING holds a base case expectation for the Bank to hike rates 25 basis points on a 8-1 vote, raise their inflation forecasts and say medium-term growth has not been impacted by Omicron.

They are expected to signal more “modest” rate hikes are coming but are vague about when they might come.

They are also expected to announce quantitive tightening will begin by not reinvesting maturing bonds purchased under their quantitative easing programme.

A more hawkish scenario – but which does not form ING’s base-case – is the Bank hikes on an unanimous decision and explicitly signals another rate hike in March or May. They also signal a desire to accelerate quantitative tightening via bond sales in coming months.

Here, EUR/GBP goes to 0.8250 (GBP/EUR up to 1.2121).

ING says a dovish outcome would see the Bank of England forgoing a rate hike courtesy of a split decision on the MPC, while signalling that a rate hike is likely at the March meeting.

They would justify going against the market’s expectations for a hike by saying they need more time to gather data regarding the impact of Omicron on the economy.

Here EUR/GBP is forecast to go to 0.8450 (GBP/EUR to 1.1834).

Written by Gary Howes

Source: Pound Sterling Live

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

Bank of England target never been further out of reach as inflation accelerates to 30-year high

The Bank of England has never been further away from its legal inflation target, revealed official figures released today.

Spiralling inflation has heaped further criticism on the Bank’s decision to keep rates at record lows while UK inflation was taking off after the country emerged from the most onerous Covid-19 restrictions.

The cost of living hit its highest level in nearly 30 years in December, accelerating to 5.4 per cent, smashing the City’s expectations.

That is the hottest rate the consumer price index has reached since the Bank adopted it as its inflation targeting measure in 2003.

Former Bank rate setter, and senior advisor to Cambridge Econometrics, Andrew Sentance told City A.M. the Bank “has been slow to respond to this inflationary threat. Further interest rate rises will be needed this year and next to bring inflation back on track.”

To find out more about how we can assist you with your Second Charge Mortgage please click here

The Bank “will be playing catch-up this year,” he added.

Threadneedle Street has a legal requirement to keep inflation at two per cent, meaning today’s figure is nearing triple that goal.

Worryingly, the Bank is unlikely to get anywhere near its legal requirement anytime soon.

Most expect the rate of price rises to hit seven per cent in April, led higher by the energy price cap adjustment taking effect.

Inflation “will stay above four per cent for all of this year and will remain above the two per cent target until April 2023,” Paul Dales, chief UK economist at Capital Economics, warned.

Responding to a grilling by MPs on the Treasury Committee, Bailey said the central bank will do everything “to keep inflation under control”.

The elevated inflation reading ignited a flurry of top City economists placing bets on the Old Lady hiking interest rates for the second time in as many months at its next meeting on 3 February.

James Smith, developed markets economist at ING, said: “Inflation has surprised higher (again) and that’s only likely to increase the temptation for Bank of England policymakers to hike rates for a second consecutive meeting this February.”

By JACK BARNETT

Source: City AM

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

Unemployment figures increase pressure on BoE as wages lag inflation

The UK’s unemployment rate continued to fall in December 2021, but commentators have warned that the figures should be “taken with a pinch of salt”, while adding further pressure on the Bank of England.

The latest data from the Office for National Statistics estimates that there were 29.5m employees in the UK in December, an increase of 184,000 on the revised November 2021 level and up 409,000 on February 2020 pre-Covid.

The UK’s unemployment rate fell 0.4 percentage points to 4.1% on the quarter, but economic inactivity rose.

The data, however, focuses on the unemployment rate for September to November – before the Bank of England hiked interest rates in response to soaring UK inflation, as well as the onset of Omicron, which has had a widespread impact on businesses and services across the country.

With UK inflation expected to peak further this year, household incomes are set to be squeezed further.

Danni Hewson, AJ Bell financial analyst, said: “Furlough was seen as the cotton wool that cushioned the UK’s jobs market from the ravages of Covid. The end of the scheme filled many with dread, a fear that those still being protected would find themselves out of work sending unemployment levels soaring.

“The reality is an intriguing picture with a record level of job vacancies, the number of employees more than 400,000 above that pre-pandemic and the redundancy rate at a record low.

To find out more about how we can assist you with your Second Charge Mortgage please click here

“So far so good, but that’s not quite the full story and between the lines is a complex situation that does require careful consideration.”

Hewson noted that despite an improvement in the number of new job vacancies coming to market, there is a “yawning chasm” between the number of workers available to employers and the number of workers needed to “thrive or in some cases survive”.

At the same time, the number of people categorised as ‘economically inactive’ grew by 0.2% from September to November to 21.3%, Hewson highlighted, despite the improvement in the overall unemployment figures.

Shane O’Neill, head of interest rate trading for Validus Risk Management, said: “This [unemployment] number, though positive, will be taken with a pinch of salt – it predates both the BoE rate hike and the onset of Omicron, which caused significant economic scarring.

“It will serve as partial confirmation that the decision to hike in December was the right course of action, though the true test for this will be post-Omicron data.

“These figures represent another box ticked on the path to more rate hikes, the first of which is expected as early as February. Focus will now turn to tomorrow’s inflation data.”

James Lynch, fixed income investment manager at Aegon Asset Management, said: “The labour market is key for the Bank of England’s medium-term outlook on inflation. If the signs are there for wage rises in the future, then inflation is going to be longer lasting than what is currently being driven by spiking energy prices.

“With inflation still to rise further over the next three months and Covid-19 restrictions being eased – which will help economic activity – plus a tight labour market, we expect the Bank of England to raise interest rates to 0.50% in its next MPC meeting on 3rd February.”

What an interest rate hike in February would mean for markets

Paul Craig, portfolio manager at Quilter Investors, argued that although the Omicron variant has had less of an impact than many anticipated, its emergence still saw many people cancelling or rearranging plans “which will have thrown a spanner in the works for many businesses”.

“Additionally, many employees are still currently being told to work from home where possible, which will continue to disrupt demand, particularly in city areas,” he said.

Craig added: “While the unemployment rate is looking generally positive, the true impact of the Omicron variant on businesses and their employees will likely play out in the coming months, particularly as government support schemes were so limited this time around.”

Nevertheless, interactive investor’s Myron Jobson noted that the UK job market is “very much alive and kicking”.

The personal finance campaigner said: “The UK job market remains robust, but wages continue to lag behind inflation which threatens to put pressure on household budgets, with higher taxes and further increases in the cost of living still to come.

“Concerns remain about the quality of employment. What percentage of young people in employment are on temporary contracts for example?”

UK GDP beats consensus forecasts but experts warn of bleak data for 2022

Jobson also highlighted the ongoing gulf between demand and supply in some sectors, such as the HGV driver shortage, while the hospitality sector’s “struggle to attract talent” is ongoing.

He added: “Many firms are still struggling to fill vacancies, which threatens to impact businesses’ ability to meet demand for goods and services – adding to supply chain pressures.”

But while employment rates in the UK rose in November last year, investor confidence in UK economic growth has fallen, with inflation and a squeeze on income unsettling markets.

Despite better than anticipated job growth, wages continue to lag inflation. The FTSE 100 fell following the ONS’s data, with Right Move one of the largest losers over concerns how the housing sector will be impacted with another interest rate rise looming.

According to the Hargreaves Lansdown investor confidence index, confidence in UK economic growth has fallen 2% since November.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ‘’The financial and labour markets have batted away Omicron like an annoying fly, but worries are increasing that inflationary pressures combined with an income squeeze could come with a painful sting.

“The effect of the great resignation as workers search for higher pay is filtering through to wage growth, but the rises aren’t keeping pace with inflation.

“It’s a problem already buzzing in the ears of Bank of England policymakers, as they decide when and how quickly to raise rates to try and keep a lid on price rises.”

By Alex Rolandi

Source: Professional Adviser

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

UK inflation to remain more than double BoE’s target for entire year

UK inflation will run at more than double the Bank of England’s two per cent target for a whole year, reveals fresh forecasts published today.

The rate of price increases will peak at 6.7 per cent this April, lifted higher by the energy bill cap being hoisted around 50 per cent, according to investment bank BNP Paribas.

October’s 2021 official inflation rate hit 4.2 per cent. BNP Paribas predict the rate will not fall below four per cent until November this year, meaning the cost of living will remain at least double the Bank’s target for an entire year.

Inflation does not fall back to the Bank’s target until April next year under the investment bank’s forecasts.

Soaring wholesale gas prices triggered by an energy crunch in Europe, compounded by supply chain breakdowns and a tight labour squeeze has propelled inflation in the UK to historically high levels.

To find out more about how we can assist you with your Second Charge Mortgage please click here

The cost of living is already running at its hottest rate in over a decade, hitting 5.1 per cent in November, according to the Office for National Statistics.

Households are set to be squeezed by inflation eroding real incomes and the Bank hiking rates rapidly in response to the rapid cost of living increase.

Consultancy Capital Economics is pricing in four rate hikes in 2022, taking borrowing costs 1.25 per cent, the highest level since February 2009.

The predictions come as the International Monetary Fund warned yesterday emerging market economies need to prepare for potential currency fluctuations and financial market volatility triggered by the world’s top central banks tightening policy sharply this year.

The Bank will announce its next decision on interest rates on February 3. Last month, the central bank raised rates for the first time in over three years, lifting them 15 basis points from a record low 0.1 per cent.

By JACK BARNETT

Source: City AM

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

Inflation will get worse before it gets better in 2022

Investors should brace for high inflation to persist into next year if supply chain hold ups are not dealt with, according to experts.

Towards the end of 2021 the impact of higher prices was already being felt. Stocks wobbled while bond prices rose as central banks began taking measures to combat higher inflation, including raising interest rates and cutting back their asset purchasing programmes.

If this persists, growth stocks – such as the giant technology companies – should lag as these stocks are generally on higher valuations due to their future earnings prospects. When rates rise, however, these future earnings have a higher discount rate, reducing their appeal.

Similarly, bonds should also perform poorly, as higher interest rates should lead to higher bond yields and therefore lower prices.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said it is something investors should brace for heading into next year.

“The snarled up supply chains all over the world that have forced prices higher, don’t look set to ease significantly,” she said.

Guy Foster, chief strategist at Brewin Dolphin, said that production delays will be resolved and supply will catch up with demand, but not until the end of next year.

Until then, prices will continue to climb and central banks will be under increasing pressure to implement tighter monetary policies.

Inflation rates are currently well above central banks’ aims of 2%, leading to fears that increasing prices may lead to a mismanagement of monetary policy.

Streeter warned that the balancing act of combating inflation with stimulus programmes while ensuring economic growth, “may keep a lid on valuations, squeezing exuberance out of the markets”.

However, banks risk ‘stagflation’ if they do not act, according to Ben Russon and Will Bradwell, fund managers at Franklin Templeton. This could occur in some markets next year if inflation rates exceed GDP growth.

Central banks have already started to act, but differ on their approaches. Below, Trustnet looks at how the three main central banks are tackling inflation in their regions in 2022.

To find out more about how we can assist you with your Second Charge Mortgage please click here

Bank of England

The Bank of England (BoE) rose interest rates to 0.25% after inflation rose to 5.1% in November, the highest it has reached in 10 years.

Changes to monetary policy are a rarity for the BofE, which has barely altered interest rates for much of the past decade, but the current inflation situation became too big to ignore.

David Roberts, head of the global fixed income team at Liontrust, said: “With RPI running at 7%, unemployment falling fast and fears that further lockdowns would only fuel further price rises, delaying rate hikes would surely have been a mistake.”

The bank has had to rethink its outlook after its original prediction that inflation would not reach 5% until spring next year was quickly shattered. New estimates anticipate that inflation in the UK will peak at 6% in April before easing.

However the loaming threat of Omicron and stricter covid restrictions on the horizon could fast forward inflation again, leading to additional monetary tightening in the new year.

Slow GDP growth, which rose just 0.1% in November, made the bank hesitant to raise interest rates and stifle an already struggling economy. With a potential lockdown inbound, economic growth may slow down to the backdrop of rising inflation.

Laura Suter, head of personal finance at AJ Bell, said: “While Omicron is still a worry for the Bank, rampant inflation is clearly an even bigger concern.”

Federal Reserve

The US Federal Reserve (Fed) has taken one of the most aggressive strategies to combat inflation by tapering its bond purchasing programme.

The bank announced that it would be doubling its monthly tapering to $30bn (£22.5bn) after inflation in the US reached 6.8% in November, its highest level since 1991.

Ellen Gaske, lead economist, G10 economies on the global macroeconomic research team and Robert Tipp, chief investment strategist and head of global bonds at PGIM, said: “Fed officials are nervous inflation dynamics could take hold without more aggressive Fed action.”

After the tapering policy ends in March, Fed officials expect interest rates will be raised three times in 2022.

The Fed aims to reduce inflation rates to 2.6% by the end of next year through these monetary policies, but this may be overly optimistic, according to Kristina Hooper, chief global market strategist at Invesco.

She said: “We do think inflation could remain high — and even rise further — in coming months. However, our base case for 2022 expects the rate of increase to peak by mid-year as supply chain issues resolve, vaccination levels increase and more employees return to the workforce. So in the back half of 2022, we do not expect prices to continue to rise at a quickening pace.”

European Central Bank

The European Central Bank (ECB) also announced that it will be ending its Pandemic Emergency Purchase Plan in March 2021, but offset much of this by doubling the long running Asset Purchase Programme. It also gave no indication of an interest rate rise.

The bank is keeping its monetary policy flexible around the unpredictability of covid, not wanting to slow economic recovery as inflation rises.

Interest rates could potentially rise next year if inflation rates reach 2% ahead of its mid-year predictions, the bank says.

The ECB continues to describe the inflation problem as “transitory”, whereas the UK and US central banks are creating more long-term solutions, albeit with higher domestic inflation levels.

By Tom Aylott

Source: Trustnet

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

BoE still likely to lift rates at December meeting, says Deutsche Bank

BoE is still likely to hike interest rates by 15 basis points to 0.25% at its December meeting despite the rise in uncertainty around the Omicron variant, Deutsche Bank senior economist Sanjay Raja said on Thursday.

Raja said Deutsche was sticking to its call because fundamentally, news of the Omicron variant has changed little on the medium-term economic outlook.

“The labour market remains as tight as it has been in recent memory, in spite of the furlough scheme ending on 30 September,” he said. “And inflation continues to outpace staff forecasts, despite a sizeable upward revision in the November Monetary Policy Report.”

To find out more about how we can assist you with your Second Charge Mortgage please click here

Moreover, Raja said the potential disruption from Omicron may lead to even more inflationary pressures in the medium term, with supply chain bottlenecks and labour shortages/mismatches further exacerbated by rising restrictions, both domestically and globally.

“In the end, a 15bps hike would do little to disrupt the recovery, given the lengthy lag in monetary policy transmission,” he said.

Risks to Deutsche bank’s view are finely balanced, however. “As Saunders recently noted, there may be some marginal benefit in waiting for new information on the Omicron variant, including its impact on infections, hospitalisations and vaccine efficacy.

“But, we argue that there is also a cost to waiting – likely requiring a faster pace of tightening in the near term to keep medium-term inflation in check, something we think the Bank will likely want to avoid.”

By Michele Maatouk

Source: ShareCast

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

Weaker spending to weigh on UK economy next year

Weaker consumer spending and downbeat trade will cause the UK economy to expand at a slower pace than expected next year, according to a new report released today.

The British economy will grow 4.2 per cent next year, a downward revision from 5.2 per cent, according to projections made by the business group the British Chambers of Commerce (BCC).

Lower consumer spending is the main driver for the less optimistic outlook, caused by roaring inflation and tax hikes earring into households’ real income.

The BCC expects inflation to scale to 5.2 per cent next spring, 0.2 percentage points higher than the Bank of England’s expectations.

To find out more about how we can assist you with your Second Charge Mortgage please click here

Ongoing supply chain snarl ups scuppering trade flows, compounded by worker shortages and prices rising rapidly will also weigh on growth.

Suren Thiru, head of economics at the BCC, said: “The downgrades to our forecast reflect a moderating outlook for key areas of the UK economy, including consumer spending and trade.”

“Consumer spending is likely to be more restrained than expected over the near term from a combination of negative real wage growth and stretched household finances amid rising inflation,” he added.

Household spending represents an enormous share of output in the UK, meaning any reduction in spending hits the economy hard.

By JACK BARNETT

Source: City AM

Discover our Second Charge Mortgage Broker services.

Marketing No Comments

BoE provides further support for interest rate hike

Ben Broadbent, the monetary policy chief for The Bank of England has said that inflation is likely to soar above 5% in the first half of next year. With forecasts comfortably above the BoE’s 2% inflation target, it is expected that interest rates will be hiked early in 2022. Despite the positive sentiment, GBP has found little support amongst its piers, continuing its downward trend against USD and struggling to break out of the 1.17 channel against EUR. Broadbent has indicated the Bank of England believes this accelerated inflation in the cost of goods has come as a result of short-term global supply chain squeeze and is likely to reverse slightly into next year as conditions improve.

To find out more about how we can assist you with your Second Charge Mortgage please click here

Some analysts and market makers are suffering from what could be coined interest rate “cold feet”. Market expectations have changed dramatically over the past 6 months, with forecasts placing a hike before the end of the year now being shunted towards the back end of Q1 2022. These continual shifts can create a “boy who cried wolf” scenario, producing a difficult landscape for GBP to find it’s much needed support. COVID-19 uncertainty is also playing a part – the rise of the new Omicron variant can put a dampener on economic policy change, with the UK Government needing fully understand the potential fallout prior to committing to a hike.

By NIKI SEHMBI

Source: World First

Discover our Second Charge Mortgage Broker services.